Huge Potential In El Salvador’s Adoption of Bitcoin Highlighted In Recent Bank Of America Report
When the Bank of America released a Global Research report entitled “Opportunities: remittances, financial digitalization, business with US firms,” President Nayib Bukele of El Salvador found it very promising. So much so that he tweeted screenshots of it while stating, “Some of the opportunities @BankofAmerica sees with El Salvador’s #Bitcoin.”
It’s a no-brainer what Bitcoin could do for countries like El Salvador if they adopt it as legal tender. The first significant item that comes to mind is the cost of remittances. Imagine how much money is being sent to, from, and within El Salvador daily. The BofA report points out, “Using Bitcoin for remittances could potentially reduce transaction costs compared to traditional remittance channels.”
For every dollar on fees that are saved for both merchants and consumers, that’s more spending power they keep for themselves. For a country that has been suffering from persistently low levels of economic growth, the adoption of Bitcoin as legal tender in June of this year seems to be the answer that can turn everything around.
In addition to saving on remittances, the BofA report further points out the benefits Bitcoin brings to more than 70% of the adult population who don’t have a bank account. It not only provides a safe and effective way of protecting legal tender for adults who don’t use banks, but it also offers merchants and consumers more choices for doing business. As it is so appropriately stated in the report, Bitcoin adds a “progressive touch,” certainly a concept the young President Bukele can appreciate.
To add to that progressive touch is the benefit of bringing in Foreign Direct Investments from countries like the U.S. The report pointed out that these FDI flows could include Strike, the developer of a payment platform that connects the world as well as, “Bitcoin miners, ATM manufacturers, among other types of firms.”
Since the adoption of Bitcoin as legal tender, Bitcoin ATMs have been popping up all over the country with 1,500 installations just to start. With that potential, we could see a healthy rise in El Salvador’s economic growth.
But the green aspect El Salvador brings to the table might interest many people who worry about the use of electricity in mining. The BofA report states, “Bukele said that the state-owned geothermal company, LaGeo, could produce clean energy from volcanoes to supply Bitcoin miners.” With the many benefits, Bitcoin brings to El Salvador, this bit of news should put a smile on the faces of all the people who worry about the environment. As stated earlier, this really is a no-brainer.
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